A 5.5 billion Hong Kong dollars (705.13 million US dollars) deficit was recorded in Hong Kong's Balance of Payments account, at 1.7 percent of GDP, in the second quarter, the Census & Statistics Department of Hong Kong government said here Thursday.

In the first quarter, the Balance of Payments account was recorded a 2.6 billion Hong Kong dollars (333.33 million US dollars) surplus, according to the department.

Of the major components, there was a current account surplus of 29.7 billion Hong Kong dollars (3.81 billion US dollars), at 9.1 percent of GDP, in the second quarter, smaller than the 33.3 billion Hong Kong dollars (4.27 billion US dollars) in the first.

At the same time, a net outflow of financial non-reserve assets amounting to 11.4 billion Hong Kong dollars (1.46 billion US dollars), or 3.5 percent of GDP, was recorded, compared with a net outflow of 49.2 billion Hong Kong dollars (6.31 billion US dollars) in the first quarter.

The mild deficit in the second quarter was mainly attributable to the rapid rise in purchases of overseas portfolio investment assets, particularly debt securities. This, notwithstanding the more active purchase of local equity securities by foreign investors, resulted in a further substantial net outflow of portfolio investment.

Source: Xinhua